Pictured above: Penk Valley Solutions MD, Nick Lakin

Bosses in the West Midlands are being warned that new grievance laws could lead to a flood of tribunal claims, with huge penalties for companies already under siege from the recession.

Workers can now go straight to a tribunal without telling their boss what the grievance is - and if the firm has not followed the new ACAS code of practice by the book, tribunals can increase awards by up to a quarter.

Independent mediation service Penk Valley Solutions Ltd, says the new rules mean companies could be faced with surprise claims - and the first they would know about them was when they were notified by the tribunal to attend a hearing.

Stafford-based Penk Valley Solutions says all companies in the West Midlands need to urgently review their HR policies and procedures to make sure they're fit for purpose in the light of the new code, which has replaced the old statutory procedures.

"No-one is immune to this 45-point code, which was brought in during April without any trumpeting, but which threatens devastation for those who don't comply absolutely," said Penk Valley Solutions MD Nick Lakin.

"It is yet another threat to businesses, but it is now the law and has to be complied with absolutely." Mr Lakin, a former Staffordshire police officer, said one way to counter the threat was for companies take steps to introduce mediation policies that would encourage workers to make their managers and bosses the first port of call when they have a grievance.

"ACAS's guide to discipline and grievances at work suggests an independent third party or mediator can help resolve issues and we are already seeing this in practice," said Mr Lakin.

"We are also training people within companies so they can mediate in disputes between employees, allowing them to introduce common sense before they get out of hand."

Penk Valley Solutions says when companies fall out with employees both can suffer. "One loses their job and the other usually loses a valuable worker. There are no winners," said Mr Lakin.

The company says companies and legal firms are increasingly using Penk Valley Solutions' trained mediators to resolve disputes without, costly court and tribunal appearances.

"Lawyers in particular, are changing their view and now helping clients resolve disputes without going to court." "The majority of disputes - whether business or domestic - are sparked off by trivial matters, but quickly get out of hand beyond all proportion. We are trained to bring the two sides together as independent mediators prepared to listen to all points of view and suggest solutions that don't mean loss of face, employees and jobs," added Mr Lakin.